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After SPAC Mania, Electric-Vehicle Startups Face a Cash Squeeze

  • Smaller EV companies with no revenue fear equity dilution
  • Fresh funding becomes harder to come by -- and more costly
Lordstown Motors is delaying plans for its Endurance pickup truck.

Lordstown Motors is delaying plans for its Endurance pickup truck.

Photographer: Matthew Hatcher/Bloomberg
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Two years into the SPAC merger boom for electric-vehicle startups, companies are having a tough time finding cash to actually produce cars.

First Lordstown Motors Corp. said it would back off investing in the tools to build its electric trucks until capital markets loosen up. Two days later, EV Startup Canoo Inc. issued a Going Concern notice to alert investors warning that it could run out of cash.